With the help of agency mode, many of the big international brands that have gained a firm foothold in the Chinese market are now in love and hate for the "shortcut" originally chosen.

Recently, the famous American brand.

GUESS lower body, lower price.

Recently, I saw in many shopping malls in Xidan, such as joy city and blue harbor. GUESS, a famous American brand in the store, is now throwing 50 percent off of its clothing and package products.

According to the GUESS shopping guide, you can get an original price of more than 1000 yuan by purchasing any two items plus 300 yuan.

It is understood that, at present, the price system of GUESS has fallen from the initial average price of 3000 yuan to below 1000 yuan.

Some insiders said that GUESS's package and clothing and accessories were sold by 50 percent off, which has been more normal.

A shopping mall executive in Beijing said that during the season, many brands of goods will be discounted and digested, but the proportion of goods with heavy discounts should not exceed 30%.

In fact, GUESS has been on the same level with brands such as CK and COACH in terms of price and positioning. It is not a cheap and cheap brand.

It is reported that CK and other brands are generally sold at a larger discount in Oteri J, but there is little sales promotion in department stores.

Today, GUESS's sales promotion model in the retail channel has changed its high-end brand image in the minds of many consumers.

"Sheep management" reveals disadvantages

It is reported that GUESS has adopted the mode of "general agent + distributor" in the Chinese market. Most of the products in GUESS counters are purchased from the US headquarters by agents.

Once the goods are backlog, the agents usually sell discounts in order to reduce losses, but there is no scientific plan for the discount cycle and intensity.

The brand knows that the discount strategy is harmful to the image, but there is no way out.

GUESS headquarters in the United States has said that because of the implementation of the agency mode in China, it is difficult for GUESS headquarters to monitor the discount of agents.

As a result of avoiding business risk, the agency model has always been the mainstream model of foreign brands entering China.

However, after collecting agency fees, these brands often adopt "sheep management", which leads to the gradual deterioration of agency mode.

The agency mode can pfer business risk, but if the agent's operation is insufficient, the brand will lose more. GUESS is like that.

In the Chinese market, the well-known international brand is not a case because of the excessively careless choice of agents, and many famous international brands such as cosmetics and clothing have gone through a detour.

Market requires agency mode to be flexible.

It is also aware of the harm caused by the agency mode. A revolution in the recovery agent has been raised in the high-end brands.

Last year, the high-end brand Burberry bought its franchise partner KwokHangHoldings, a franchise business in China, at 70 million.

Before that, brands such as MontBlanc, Montagut and COACH also reclaimed their agency rights in China.

However, the industry believes that although the disadvantages of the agency system appear gradually, it will not completely withdraw from the stage of history in the short term.

Lin Jie, general manager of Kim Mei Shi, general manager of Beijing, thinks that because of the wide market in China, besides the big cities like Beijing and Shanghai, the three or four tier cities that are interested in international brands but will not be able to understand deeply will be the new development platform for agents.

Some business experts say that although the international brands that had gained a firm foothold in the Chinese market through the agency mode seemed to be tired of the agency system at the early stage, they still need the assistance of agents to sniff out more brands coming from Beijing and even China's huge business opportunities.

Liu Hui, a business consultant, believes that after taking the agent brand to enter the emerging market, they can not blindly believe in the financial strength of the candidate agents. Instead, they should consider whether they have experience in the field of agency, VIP customer groups and inventory digestion channels.

At the same time, some domestic brand agents are also preparing to open up a new chapter of agency mode.

It is reported that when some agents cooperate with brands to open stores, they will only be responsible for inject capital, and the development and operation of the sales chain, supply and market are all responsible for the brand business.